Invest Region Leipzig GmbH

4 reasons to expand to your business to Germany

Germany is the fourth best country in the world to base a business. The country provides a stable political and economic environment for growth. Germany’s remarkable economy, consumer market, and workforce, together with its strategic location in the European Union (EU), make it an excellent choice for enterprises wishing to increase their global impact in Europe and beyond.

1. Prosperous economy

Following the reunification of Eastern and Western Germany in 1990, Eastern Germany trailed considerably behind Western Germany in terms of economic development; it needed time and money for the country to integrate properly before both areas could thrive economically. Today, Germany’s economy is stable and growing, and the country is well-known across the world for automotive manufacturers such as Volkswagen, BMW, and Daimler, among others. Germany has a mixed economy, often known as a “soziale marktwirtschaft,” or social market economy, which is a free-market economy with government control and social welfare programmes.

Germany has the largest economy in Europe and is one of the five largest economies in the world. Germany accounted for approximately a quarter of the EU’s overall gross domestic output in 2019.

2. Large consumer market

In addition to having the largest GDP, Germany’s population of 83.2 million outnumbers all other EU countries, accounting for 18.6 percent of the total EU population. As a result, Germany has the largest consumer market in Europe, both in terms of population and spending power. In 2019, Germany’s quarterly consumer expenditure varied from more than 429.6 billion euros to almost 431 billion euros. Extending your operations to Germany may provide you with direct access to this enormous consumer base, assisting you in growing your business.

3. Strategic position in Europe

Companies looking to join the European market from outside of continental Europe may wish to consider Germany due to its advantageous geographic position. Germany is located in centre Europe and borders nine countries: Denmark, the Netherlands, Belgium, Luxembourg, France, Switzerland, Austria, the Czech Republic, and Poland.

Trade exhibitions and other industry-wide events are also popular in Germany. According to the German Trade Fair Industry Association, Germany hosts two-thirds of the world’s top trade fairs. Every year, around 10 million visitors attend German trade fairs. With a presence in Germany, your firm enjoys front-row access to these events as well as simple access to a much larger network of European countries with whom it has profitable economic connections.

The Leipzig region, strategically placed at the crossroads of two of Europe’s oldest trade routes, has been a centre of commerce and manufacturing since Roman times. As a result, Leipzig boasts centuries of history as a premier pan-European centre of business and growth. One key factor is its unusual location in central Germany, at the centre of Europe. Leipzig connects critical long-distance commercial routes from northern to southern and eastern to western Europe. Over time, a good trimodal infrastructure for road, rail, and aviation traffic has grown on this base. Because of this distinct selling factor, the area has evolved into a significant international transhipment centre.

4. Skilled workforce

The country’s highly qualified workforce is partly responsible for Germany’s reputation for productivity and innovation. Germany isn’t renowned for having very high levels of educational achievement. In 2018, little under a third of German people aged 25 to 34 possessed a postsecondary degree, well below the average for other Organization for Economic Cooperation and Development (OECD) nations. However, this is owing to Germany’s strong vocational education and training (VET) system, with 44 percent of upper secondary graduates holding a vocational qualification.

It’s also worth noting that roughly 46 percent of individuals who pursue higher education earn a master’s or doctorate degree. This is significantly higher than the OECD average of 34%. Moreover one-third of tertiary-educated persons have a degree in science, technology, engineering, or mathematics (STEM). Engineering, manufacturing, and construction were also popular disciplines among upper secondary vocational graduates. Another third went to school for business, administration, and law. Health and welfare are the most common areas of study at the postsecondary non-tertiary level.